So this year is starting off with a bang. Submitted our first offer for the year and showed property to a client. No complaints here.
The question is how does one come up with their listing price? I know how I do it and maybe I'm missing something.
Okay, I'll back up a bit... one of the properties I showed was a 2 acre flat lot with no improvements on it. The property is one of two parcels that were recently purchased (closed a few months ago) total of 8 acres for 1.8M. All improvements are on the parcel that is not being sold. The 2 acre portion is listed at 1.3M and raw.
Mathematically speaking then the listing agent is thinking the value of the property has exponentially risen in value? (Comparables in the area does not reflect this and in realty the sale of this property brought value down in the neighborhood.)
That 6 acres with improvements; home, stalls, turn out, and arena are worth only $500,000? (How can that be?)
If any one can shed light on this I'd greatly appreciate it... I'm scratching my head.